House Foreclosure Numbers Worsen in May

House foreclosure activity is getting worse and the recently released numbers for May prove it. House foreclosure filings are actually increasing when calculated year over year for 29 consecutive months ending in May 2008 according to RealtyTrac.

The report also listed the following house foreclosure stats:

- 1 in 483 homes received a foreclosure notice in May

- REO (this is when the bank takes possession of the house at the foreclosure auction) is up 35% from April and up 158 over the same time in 2007.

- NOD’s or Notice of Defaults are up 1% from April and 35% year over year.

- The only “good news” in home foreclosure numbers is auction notices dropped 3% from April, but still up 13% year over year.

These house foreclosure numbers do NOT bode well for those who’d like to believe the housing market will soon find a “bottom”.

Be careful about house foreclosure statistics. They can turn on a dime…both for the worse or the better. Month over month changes are not as reliable as year over year. When making decisions don’t base your choices on short term stats. Look at the big picture.

Realtors, mortgage salesmen, and others will use stats to paint a rosier picture with short term stats. The NAR spokesman does it all the time. Don’t fall for it.

Know this: home prices will stabilize. Maybe not this year or even next year, but they will stabilize. After they stabilize, depending on inventory, supply vs. demand, interest rates, inflation, etc., someday they will actually begin to rise.

In America, owning a home is part of the American Dream, so home prices will come back. Just hang in there.

If you are facing foreclosure and need information on how to save your home, check out our book, Stop Your Foreclosure Now! and read the article, Home Equity Sinks To Record Low Triggering More Foreclosures, for a home-saving technique for those in a “no equity” home.

Good Luck!

Author: Rob K. Blake
Published June 13, 2008